In 2013, you would have been hard-pressed to talk someone into playing real estate investment trusts (REITs). But with REITs returning 18 percent right now, you might want to reconsider — especially when you consider that’s more than 400 percent higher than Treasury bonds’ 3.8 percent return. Michael Widner, a REIT analyst for KBW Bank, said investors can expect “20 percent or more” in 2014. That figure comes from the combination of REITs trading at a 20 percent discount to their historical averages and their generous yields. David Cohen, manager of the Eudora Fund, said that Annaly Capital Management, Inc. (NLY) is a good play on the whole sector for 2014, and it pays an 11.4 percent dividend. But, of course, his fund has 4.4 percent of its assets in NLY. You’ll have to make up your own mind as to whether NLY is the way to play REITs in 2014.
Jim Woods has over 20 years of experience in the markets from working as a stockbroker,
financial journalist, and money manager. As well as a book author and regular contributor to
numerous investment websites, Jim is the editor of:
Bob Carlson provides independent, objective research covering all the financial issues of retirement and retirement planning. In addition, Bob serves as Chairman of the Board of Trustees of the Fairfax County (VA) Employees’ Retirement System, which has over $2.8 billion in assets.
Hilary Kramer is an investment analyst and portfolio manager with 30 years of experience on Wall Street. Since 2010, Hilary's financial publications have provided stock analysis and investment advice to her subscribers: